Second grader Tia Consonery worked on writing a story– on the carpeted floor in Ms. Sarah Bolton’s classroom at Community of Peace Academy in St. Paul Thursday morning January 26, 2012. The Republican’s are pushing the idea that state money will follow students to private schools, causing financial problems for public schools statewide. (Pioneer Press: John Doman)

Charter school supporters are backing legislation that could mean a windfall for some of the independent schools, which can’t levy taxpayers on their own.

The Republican-backed plan would allow local referendum dollars to follow students if they attend a charter within their district boundaries. It would take about $20 million from local school districts and transfer it to charters, which are public schools that operate outside the traditional district structure.

St. Paul and Stillwater would be among the biggest losers in the east metro if the bill passed, losing an estimated $3.3 million and $1 million respectively. But charter schools such as St. Croix Preparatory Academy in Baytown Township and Community of Peace Academy in St. Paul would gain $850,000 and $370,000 respectively.

“It seems like it would level the playing field if the levy dollars followed the student,” said Karen Rusthoven, executive director of Community of Peace, the charter school that would receive the state’s ninth-largest gain. “All of us are trying to provide a good education for all of our children.”

A bill on the issue was discussed at a state House Education Finance committee meeting earlier this week. No action was taken.

State law does not allow Minnesota’s charters to levy taxpayers for operations or buildings, unlike school districts, which levy about $2.2 billion annually from property owners. Charters get a per-student stipend from the state for operations and to rent space.

But opponents of the levy transfer say charters actually get more money per pupil than traditional public schools. This year, charter schools on average receive $10,044 per student, while school districts receive about $9,756 per pupil.

“When charters were created, the promise was if you free us from the burdens of mandates, we can educate students better and do it cheaper,” said Rep. Jim Davnie, DFL-Minneapolis. “But when you dive into it, very few are doing it better, and they’re not doing it cheaper.”

School district leaders also point out other costs they shoulder for charter school students that charter supporters don’t talk about, such as special education and transportation services.

Special education is the most expensive item. According to the state Education Department, school districts spend an additional $21.3 million – above and beyond aid they receive from the state and federal government – for special-education services for students in charter schools.

Scott Croonquist, executive director of the Association of Metropolitan School Districts, said his districts pay an additional $647 per pupil to make up for special-education costs the state and federal government aren’t paying.

“Transferring those levy dollars, it would exacerbate an already very difficult budget situation for these districts,” Croonquist said.

St. Paul spends an additional $33 million a year for special-education programs, said Jaber Alsiddiqui, the district’s chief budget analyst. About $3 million of that goes to charter schools, according to state estimates.

The district cut about $23 million from its overall budget last year. And handing over levy dollars won’t make things easier.

“This is not something that is going to help,” Alsiddiqui said. “It’s only going to make things worse.”

Rusthoven said Community of Peace, which serves 750 students in preschool through high school, understands what it’s like to operate under tight finances. This year, teachers there got a 1 percent raise after three years of no salary increases.

The St. Paul charter’s $8.9 million budget also took a hit of $260,000 this year after lawmakers changed how lease aid is appropriated to charter schools, Rusthoven said.

“There’s no doubt that levy money would be very helpful for us,” she said.

St. Croix Preparatory would get the most money in the east metro if this bill is approved – about $850,000. School officials there did not return messages for comment.

The school draws most of its students from the Stillwater school district, which would lose $1 million under the bill. Right now, the district is grappling with significant budget reductions totaling about $10 million for next school year, more than 10 percent of the annual budget.

But Rep. Kelby Woodard, R-Belle Plaine, said the proposal is fair, making sure families aren’t being penalized for sending their children to charter schools.

“If it’s really all about the kids, then the money should follow where the kids are,” he said.

Davnie believes it’s only going to increase tensions.

“My biggest concern is it would ignite the ever-present hostility between charters and traditional public schools,” Davnie said. “You have the adults fighting, and the kids are stuck in the middle.”

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